In the United Kingdom (UK), Greencoat Capital LLP, a specialist asset manager dedicated to the resource efficiency and renewable energy sectors, has recently announced that it has signed an agreement to acquire 100 percent of Templeborough Biomass Power Plant Ltd (TBPP) from Denmark-headed Copenhagen Infrastructure Partners P/S (CIP).
According to a statement, the investment is being made on behalf of a number of Greencoat Capital’s pension fund clients and represents the company’s first move into bioenergy assets following the arrival of the bioenergy team earlier this year.
As with Greencoat Capital’s other strategies in renewable infrastructure, bioenergy assets provide stable, inflation-linked returns, with low correlation to the broader economy.
We are proud to have made our first investment, and delighted with the asset that CIP has developed. Greencoat has demonstrated sector leading performance with both its wind and solar strategies, and we look forward to replicating that in the bioenergy sector where we see a significant pipeline of investment opportunities, said Minal Patel, Partner at Greencoat Capital.
TBPP owns a waste wood biomass power plant in Rotherham, which commenced operations at the beginning of 2019. It has a net capacity in excess of 40MW, generating low carbon electricity using locally sourced waste wood.
Development and construction of the asset were financed by CIP through its CI-II fund, successfully stewarding the project from planning stages in 2015 to commercial operations in 2019.
We are pleased to announce that we have reached an agreement with Greencoat to divest our 100 percent stake in TBPP. CI-II acquired the project in 2015, financed its construction, and successfully reached commercial operations in February 2019. Since then the plant has been steadily generating renewable power from locally sourced waste wood. We would like to congratulate the new owners on the successful acquisition of a great project, said Christina Sørensen, Senior Partner at CIP.
Rothschild & Co and Mirae Asset Daewoo Co., Ltd. acted as financial advisers to CIP, while Evercore, Poyry, and Eco2 advised Greencoat.